KUALA LUMPUR: Early wage access (Ewa) is emerging as a crucial support system for Malaysia's lower-income workers while strengthening companies' environmental, social and governance (ESG) commitments.
Malaysia ESG Association president Adjunct Practice Professor Cheah Kok Hoong said Ewa directly addresses the ongoing financial strain faced by B40 households.
"People don't realise how many Malaysians still depend on daily wages," he said after a panel discussion here today.
"My family survived based on weekly wages. The salary received each day was used to buy food for the next day."
He said this day-to-day struggle remains a reality for many families, making Ewa a timely and necessary intervention.
The growing interest in Ewa coincides with Set Gaji Sdn Bhd RM100 million strategic investment to support its regional expansion and strengthen its financial wellness platform.
Lion X Ventures Pte Ltd and Holborn Capital Partners Sdn Bhd led the funding round with additional financing assistance from Capbay, leveraging alternative capital.
Cheah urged industries with large B40 workforces to seriously consider adopting Ewa.
"I strongly urge employers, especially those in industries with many B40 workers, to look at this.
"It is time to think about this idea. This is not a revolution; it's an evolution. It fills a gap that has existed for decades," he added.
Cheah also said that Ewa is also closely tied to the social component of ESG, which is often overshadowed by environmental priorities.
"Everyone talks about the 'E' because it is easy to quantify. But the 'S' is about human well-being.
"Salary is a very critical survivability factor. If workers get their wages on time, they can contribute comfortably and wholeheartedly," he said.
The concept, he said, also supports Malaysia's 1.2 million small and medium enterprises (SMEs), which contribute 38 per cent of the country's gross domestic product but continue to struggle with cash flow.
"Profit does not equal cash. If SMEs cannot pay salaries on time, how do you expect staff to give their best? It becomes a vicious cycle," he said, adding that Ewa provides an alternative that benefits both employers and employees.
"I'm very glad the platform includes subtle features like insurance for employees.
"That shows they are thinking about long-term well-being, not just short-term wages. When you see venture capitalists willing to put money in, it means they see the potential.
"They see the return, yes, but they also see the social value. It is time for companies to step up and support this ecosystem," added Cheah.
Source: https://www.nst.com.my/business/corporate/2025/12/1328387/early-wage-access-touted-critical-support-b40-workers-and-smes